My Swing Trading Approach

I added one additional trade to the portfolio yesterday, and day-traded another in ROKU, following its sell-off. Quickly stopped out of the trade, but overall I slightly increased my long exposure in the market.  

Indicators

  • Volatility Index (VIX) – A 2% decline yesterday has kept volatility price action contained. I still think that there’s a good chance for a pop here. 
  • T2108 (% of stocks trading above their 40-day moving average): Resting at 63% following another 2.2% move yesterday. Breadth not ideal, but okay.  
  • Moving averages (SPX): Trading above all the major moving averages.
  • RELATED: Patterns to Profits: Training Course

Sectors to Watch Today

Technology has traded higher for 10 straight days now and 19 of the last 22 trading sessions. To say it needs a break, is probably an understatement. Healthcare is in a similar situation as well. Energy has improved remarkably over the last two weeks, but still stuck in a range. Discretionary in a full-on breakout with the help of Amazon. Materials still not a bullish chart. I would avoid. 
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My Market Sentiment

SPX broke out of the rising channel. Hard to do, and even more so to maintain. More than anything, it signifies that price won’t be contained by boundaries of the upper and lower channel going forward. Market certainly overbought here, so a degree of caution is warranted with how aggressive you should be with new positions. 

S&P 500 Technical Analysis

swing trading strategy report 276

Current Stock Trading Portfolio Balance

  • 3 Long Positions

Recent Stock Trades – See My Past Performance Here. 

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